T1 is a Union transit procedure run through the NCTS system, which suspends the collection of duty and VAT until the transit is closed at the office of destination. Direct import, on the other hand, means releasing the goods for free circulation and paying the customs charges already at the point of entry, with no transit stage.
Contents
In brief
- ✓ T1 is transit of non-Union goods: the goods travel with duty and taxes suspended and are not yet released for free circulation.
- ✓ Direct import is release for free circulation - duty and import VAT are settled straight away and the goods acquire Union customs status.
- ✓ After a T1 is closed the goods still need to be placed under a further procedure (usually release for free circulation).
What the difference is
The external transit procedure allows non-Union goods to move from one point to another within the customs territory of the Union without being subject to import duty and other charges (Article 226(1) of the Union Customs Code). Release for free circulation, i.e. direct import, by contrast requires the collection of any duty due, other charges, the application of commercial policy measures and completion of the remaining formalities, and gives the goods Union customs status (Article 201 UCC).
| Criterion | T1 transit | Direct import (release for free circulation) |
|---|---|---|
| Duty and import VAT | Suspended during the movement | Settled on release for free circulation |
| Status of goods afterwards | Still non-Union | Union customs status |
| Security | In principle a guarantee covering the potential customs debt (Article 233(1)(c) UCC) | Usually none; you pay the charges or use deferment |
| Who is responsible | The holder of the procedure (principal): presenting the goods at the office of destination on time | The declarant and importer: correctness of the declaration, classification and value |
| End of the procedure | The goods and information are available at the office of destination (Article 233(2) UCC) | The goods are released for free circulation after the charges are paid |
When to choose T1 and when direct import
You choose T1 when the goods are to travel from the UK to a place in Poland (e.g. the consignee's warehouse or an office of destination) and you want to carry out import clearance only there - see T1 transit from the UK to Poland. Direct import makes sense when the goods are to enter circulation immediately at the point of entry into the EU. The choice depends on the route, the place of clearance, deadlines and whether you wish to lodge a transit guarantee; in both cases you need an EORI number.
How import charges are worked out
Duty depends on the tariff code, customs value and origin. On imports from the UK, 0% duty requires the TCA rules of origin to be met and proof to be held: the exporter's statement on origin or the importer's knowledge; the EUR.1 certificate is not used in EU-UK trade (GOV.UK). In many cases you can account for import VAT in your return - see VAT on imports from the UK and how to calculate duty and VAT.
Risks and responsibility
- T1: the holder of the procedure is responsible for presenting the goods intact and with the required information at the office of destination within the time limit (Article 233(1) UCC). Failing to meet obligations on the movement of goods can give rise to a customs debt (Article 79 UCC). See what to check for an unclosed T1 and how to close a T1 in Poland.
- Direct import: the most common problem is incorrect classification or customs value, resulting in additional duty and VAT. After release, a declaration can be amended only on request, with the customs authority's consent and within three years of its acceptance, to allow the declarant to meet the obligations arising from the procedure (Article 173(3) UCC).
- Customs representative: an indirect representative is jointly liable with the client, a direct one in principle is not, but in both cases the client remains responsible for the accuracy of the data supplied - see direct and indirect customs representation.
Documents and record-keeping
For a T1 document, prepare the NCTS declaration, data from the invoice, packing list and CMR, and the guarantee - see what documents are needed for T1. For an import you also need the customs value confirmed by the invoice, the country of origin, the commodity code (how to find a commodity code) and any preference documents. Keep documents for at least three years (Article 51(1) UCC); the period runs from the end of the year in which the declaration for release for free circulation was accepted, and for other procedures from the end of the year in which the procedure was discharged. In the UK, HMRC requires customs declarations to be kept for 4 years.
A T1 transit must be closed at the office of destination within the time limit set by the office of departure. If you cannot show that the transit ended correctly, a customs debt may arise.
Summary
T1 defers the settlement of charges and moves it to the destination, while direct import settles them at once. Neither is "better" - it depends on the route, the guarantee and the place of clearance. Describe your shipment through the contact form and we will help you choose the procedure. Our agency is registered in CDS (UK EORI number).
Legal basis and sources
Frequently asked questions
What is the main difference between T1 and direct import?
T1 is external transit: non-Union goods move without import duty, and settlement happens only under a later procedure. Direct import is release for free circulation, where duty and other charges are collected and the goods acquire Union customs status.
Is import clearance still needed after a T1 is closed?
Usually yes. Closing a T1 ends only the transit and the goods remain non-Union. If they are to enter the EU market they must be placed under release for free circulation and duty and VAT settled.
Who is responsible for closing the T1 and what happens after the deadline?
The holder of the procedure (the principal), who must present the goods and information at the office of destination within the time limit. Failing to meet the obligations on the movement of goods may give rise to a customs debt, and the charges may be recovered from the guarantee.
What documents are needed for a direct import from the UK?
A commercial invoice showing the transaction value, a packing list, a transport document (e.g. CMR), the importer's EORI number and the commodity code. If you claim the TCA preference you need proof of origin: the exporter's statement or the importer's knowledge. The EUR.1 certificate is not used in EU-UK trade.
Is a customs agency liable for errors in a declaration?
An indirect representative is jointly liable with the client, while a direct one in principle is not. Whatever the form of representation, the client remains responsible for the accuracy and completeness of the data supplied.
How long should customs documents be kept?
At least three years in the EU (Article 51 of the Union Customs Code) and, according to HMRC, four years for customs declarations on the UK side.
Related guides
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